Online Calculators and Inflated Returns

Survey says: women manage volatility better than men.

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There may be a gender basis by women typically save instead of invest, however, when women invest, their trading patterns are not reactionary but steady regardless of market swings.  As a result of this “hold the line” investment strategy that seems to correlate with female investors, overall their returns are slightly better than those of our male counterparts.

This article from The Street explains the difference and shares hard numbers from various studies that women on average in the long run outperform:

https://www.thestreet.com/story/14255644/1/why-women-are-better-investors-than-men.html

Pension – Lump Sum Payout vs. Pension Payment for Life

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I have seen a growing trend where company pension plans are offering clients the choice to take a lump sum as a transfer into an IRA account.  Pensions are expensive to manage and administer as well as ensuring the guarantees, so companies have started to unload them on their employees.  Some companies, in fact are not even giving their employees a choice; they are simply telling them that the plan is closing out, how do you want your money in the next 60 days?

Generally, if a client is under the age of 55, this can be a positive benefit as most pension income payments will not keep up with inflation.   The ability to invest in an IRA or to buy your own annuity with guarantees and better pricing can offer a hedge for future inflation and its effects on fixed income payments in retirement.

This article published in Forbes illustrates the impacts of inflation during retirement and how forced to make a choice with your employers pension plan could prove fortuitous to invest on your own:  https://www.forbes.com/sites/robertlaura/2018/04/30/how-inflation-can-ruin-your-retirement/#5b0a9b6d4bde